Daily Regulatory Notes 04/29/2025
Cities address STRs. New York handles lawsuit; Utah, Austin, TX and New Orleans, LA review enforcement; Norton Shores, MI drafts ordinance; Leoni Township. MI rejects proposed ordinance. READ MORE.
Every day, we bring you a detailed overview of recent news and updates about primary decisions, community feedback, or legislative changes relevant to the short-term rental industry. 📰
New York
New York City has sued LuxUrban Hotels for refusing to honor a $1.2 million settlement tied to its former identity as CorpHousing Group, which ran illegal short-term rentals under the SoBeNY name.
Read the full lawsuit here
The Office of Special Enforcement says LuxUrban acknowledged its responsibility for the debt but bounced the first payment and has since gone silent. City officials argue the company tried to distance itself from the liability through rebranding, despite keeping the same leaders and business practices.
Utah
Utah municipalities are struggling to regulate short-term rentals (STRs) due to a state law known as the “Knotwell Rule,” which prohibits the use of website listings like Airbnb and Vrbo as evidence in enforcement actions.
Recent legislative efforts like HB 256 aim to soften the Knotwell Rule by allowing listings as evidence if paired with supplemental proof, and by adjusting fines and zoning laws.
Austin short-term rental operators are adjusting after the city imposed an 11% hotel occupancy tax (HOT) on Airbnb and Vrbo listings starting April 1, aiming to curb corporate ownership and boost city revenues.
Officials expect the $7 million already collected annually from STRs to increase, but local hosts worry about higher guest costs and potential drops in demand.
New Orleans’ new short-term rental rules—capping permits at one per residential block and halting commercial permits—are under pressure during Jazz Fest, with enforcement results seen as inconsistent.
While the city touts over 5,200 removals and $685K in fines, legal listings still only account for about half of all active units. More changes are coming in July, when booking platforms must verify that listings are legally registered before allowing rentals.
Norton Shores is moving toward regulating short-term rentals with a draft ordinance reviewed by the city council on April 22.The proposal would cap licenses at three per household and split 80 total licenses across four city quadrants, aiming to curb market monopolization and address nuisance complaints like noise and parking.
Rentals would require both registration and a special use permit, backed by an annual fee, proof of $2 million in liability insurance, and a parking plan. A 1,000-foot buffer between rentals would be mandated, and permits could be revoked after repeated violations. Revisions are expected before the ordinance returns for another work session on May 27.
```Leoni Township’s Planning Commission unanimously recommended rejecting a proposed ordinance to regulate short-term rentals, arguing existing nuisance laws already address issues like noise and trespassing.
The ordinance would have required permits, capped rental stays at 30 consecutive days or 60 days per year, and imposed $500 fines for violations. The Board of Trustees will decide at their May 13 meeting whether to follow the commission’s recommendation or send the proposal back for revisions.
```⭐ Staying ahead of STR regulations isn’t just about deadlines—it’s about knowing what’s coming. Check out the Calendar Tracker to stay updated on your area's meetings or workshops.
STRisker Calendar Tracker
Staying ahead of STR regulations isn’t just about deadlines—it’s about knowing what’s coming. Our Calendar Tracker keeps you informed on upcoming meetings, key votes, and policy changes, so you never miss a critical update.
In case you missed it:
Genelaine Urbano
READ: 04/28/2025 Daily Regulatory Notes
🏫 READ: STRisker's Government 101
Dane Artisola
We’d love your feedback.
Which stories hit? Which ones missed?
We're constantly refining Daily Notes to make it even more useful for you.
Just reply directly to this email. We read and respond to every message!
-Will McClure
p.s.
Know someone else who should be reading Daily Notes? Feel free to forward this along. We’re opening a few more spots.